The Top 10 Tax Write-Offs for Your Business

A tax deduction, or “tax write-off,” is an expense that reduces your taxable income, allowing you to pay less in taxes. The IRS sets criteria for qualifying deductions. Self-employed individuals, particularly sole proprietors and partnerships, can benefit significantly from various deductions, which can save hundreds to thousands of dollars. For instance, a self-employed writer named Joe earned $60,000 in 2024. Initially, his total tax liability was $13,343. However, after finding $6,000 in contractor expenses, his taxable income dropped to $54,000, reducing his tax bill to $11,830 and saving him over $1,500.

Maintaining accurate records throughout the year is crucial for maximizing deductions and avoiding missed write-offs.

Here’s a quick list of common small business tax deductions:

1. Advertising and promotion

2. Bank fees

3. Business meals (50% deductible)

4. Business use of car

5. Contract labor

6. Home office

7. Travel expenses

8. Salaries and benefits

9. Legal and professional fees

10. Utilities (like phone and internet)

At MainStreet Advisors, we specialize in top-tier tax preparation, advisory services, payroll solutions, and bookkeeping support to small businesses and individuals year-round. Our dedicated team of professionals works closely with each client to address their unique financial needs and ensure long-term success. To schedule a free initial zoom meeting or in-person consultation, please call us (913)728-5906 or send us a message support@MainStreetAdvisory.net

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